Is Modern Art the Answer to Investors' Nightmares? Trevorlaw

The Birmingham Post (England), April 29, 2010 | Go to article overview

Is Modern Art the Answer to Investors' Nightmares? Trevorlaw


One of the main lessons learnt from the credit crunch is the necessity to diversify an investment portfolio.

Many investors, with their nerves shattered following the prospect of even their bank deposits being lost, sought out tangible investments to preserve their wealth.

Much has been made of the benefits of investing in commodities, particularly gold, property including agricultural land, and even stamp collections.

Not only can tangible assets provide security in uncertain economic times, but historically they have also proved to be an effective hedge against inflation.

While we are no doubt enjoying a present period of low inflation and interest rates, the huge amount of money supply released into the global economy may well create an inflationary problem some way down the road.

While the ultra wealthy have been able to acquire the very best of art as a long term investment, the stratospheric prices paid for works by many modern art-t ists have been beyond the reach of most investors.

The economic downturn may have contracted the highly lucrative contemporary art market, but the most famous contemporary artists still attract vast prices for their works.

It was not that long ago in September 2008 that Damien Hirst shattered the world record for an auction sale dedicated to a single artist with his two-day event at Sotheby's. In the face of the world's economic downturn, the world's wealthy were quite happy to spend pounds 111.5 million buying the British artist's formaldehyde preserved animals, but-t terfly collages and spin paintings.

Institutions have also been buyers of the very best works. The British Rail pension fund famously achieved an annual return of 11.4 per cent on its large investment in art from the mid-1970s to 1999 with modern art delivering much of that return.

But you don't have to be in the superrich category to invest in art. The Castlestone Collection of Modern Art next month launches its modern art fund, an eight-year investment vehicle with a minimum investment figure of pounds 10,000.

The Castlestone website quotes the interesting Mei Moses research finding that art has delivered an average annual return of 7.7 per cent between 1875 and 2000 outpacing the equity market's lower 6.6 per cent figure.

Its own research has shown that one of the most liquid and stable areas of the art market with the best possibility of price appreciation is post-war art from non-producing or deceased artists. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Is Modern Art the Answer to Investors' Nightmares? Trevorlaw
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.